Changes in exchange competition and regulatory reform force market participants to innovate. A major challenge is the fragmented liquidity. Competition has resulted in the introduction of look-a-like contracts on various exchanges.
FOW Magazine gathered a group of Commodity Trading Advisors and proprietary trading firms to discuss the market evolution and the impact on their businesses.
The paper provides some good insights such as that diversification in Incentives can result in shallower, more transitional liquidity.